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Wednesday, September 26, 2012

Stocks In News: Jabil Circuit (NYSE:JBL) & The New York Times (NYSE:NYT)

Sharp
fall in Jabil Circuit net income

Jabil Circuit, Inc.(NYSE:JBL) declared
its fiscal fourth quarter results on Wednesday. Its net income has fallen 28
percent due to higher costs and lower demand. The company has said that the
demand had been weak for most of its businesses. Also, it had incurred high
costs for starting a new program in its specialized services unit. Additionally,
there was a onetime expenditure of $5.9 million. However, even after taking
these factors into consideration, profits are still below analysts' estimates,
although sales were better than expectations.

Net income has fallen to $82.8 million
from $114.3 million, resulting in the earnings per share declining from 52
cents per share to 39 cents a share. Revenues rose from $4.28 billion to $4.34
billion, an increase of 1.4 percent. Analysts had estimated $4.23 billion and
earnings per share of 5.58 cents. While selling, general and administrative
expenses rose 7 percent, research and development costs increased 9 percent.

For the
fiscal year 2012, Jabil Circuit's net income rose 4 percent, to $394.7 million
from $381.1 million, its earnings per share increasing to $1.87 from $1.73. Revenues also rose from
$16.52 billion to $17.15 billion, up 4 percent.

The Jabil Circuit stock declined 10% to
$18.90 on heavy volume.

New
York Times to make a windfall on Indeed stake sale

Meanwhile, The New York Times
Company(NYSE:NYT) has said that it is going to divest its minority stake in the
job listing website Indeed.com and expects to make a profit of $100 million from
the sale. Connecticut-based Indeed considers itself the world’s no. 1 job site.

The buyer is Recruit Company Limited, a
job information company in Japan. Just a day before this announcement, the
Times had also closed the sale of The About Group to Barry Diller's IAC for
$300 million.